I 

114TH CONGRESS 

1ST SESSION H. R. 4254 

To prohibit employers from requiring grocery store employees to enter into 

covenants not to compete, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 15, 2015 

Mr. KILMER introduced the following bill; which was referred to the 

Committee on Education and the Workforce 

A BILL 

To prohibit employers from requiring grocery store employees 

to enter into covenants not to compete, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Freedom for Workers 

5 to Seek Opportunity Act’’. 

6 SEC. 2. DEFINITIONS. 

7 In this Act: 

8 (1) COMMERCE.—The term ‘‘commerce’’ has 

9 the meaning given such term in section 3 of the Fair 

10 Labor Standards Act of 1938 (29 U.S.C. 203). 


smartinez on DSK4TPTVN1PROD with BILLS
2 

•HR 4254 IH

1 (2) COVENANT NOT TO COMPETE.—The term 

2 ‘‘covenant not to compete’’ means an agreement— 

3 (A) between an employee and employer 

4 that restricts such employee from performing— 

5 (i) any work for another employer for 

6 a specified period of time; 

7 (ii) any work in a specified geo8 graphical area; or 

9 (iii) work for another employer that is 

10 similar to such employee’s work for the 

11 employer included as a party to the agree12 ment; and 

13 (B) that is entered into after the date of 

14 enactment of this Act. 

15 (3) EMPLOYEE; EMPLOYER; ENTERPRISE; EN16 TERPRISE ENGAGED IN COMMERCE OR IN THE PRO17 DUCTION OF GOODS FOR COMMERCE; GOODS.—The 

18 terms ‘‘employee’’, ‘‘employer’’, ‘‘enterprise’’, ‘‘enter19 prise engaged in commerce or in the production of 

20 goods for commerce’’, and ‘‘goods’’ have the mean21 ings given such terms in section 3 of the Fair Labor 

22 Standards Act of 1938 (29 U.S.C. 203). 

23 (4) GROCERY STORE.—The term ‘‘grocery 

24 store’’ means an establishment that sells food for 

25 home preparation and consumption and offers for 


smartinez on DSK4TPTVN1PROD with BILLS
3 

•HR 4254 IH

1 sale, on a continuous basis, a variety of foods in 

2 each of the following categories of staple foods, in3 cluding perishable foods in at least two of the cat4 egories: 

5 (A) Meat, poultry, or fish. 

6 (B) Breads and cereals. 

7 (C) Vegetables and fruits. 

8 (D) Dairy products. 

9 (5) GROCERY STORE EMPLOYEE.—The term 

10 ‘‘grocery store employee’’ means an employee who is 

11 employed by a grocery store. 

12 (6) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of Labor. 

14 (7) STATE.—The term ‘‘State’’ has the mean15 ing given such term in section 3 of the Fair Labor 

16 Standards Act of 1938 (29 U.S.C. 203). 

17 SEC. 3. PROHIBITION ON COVENANTS NOT TO COMPETE 

18 AND OTHER AGREEMENTS RESTRICTING THE 

19 MOBILITY OF GROCERY STORE EMPLOYEES. 

20 (a) COVENANT NOT TO COMPETE.— 

21 (1) IN GENERAL.—No employer shall enter into 

22 a covenant not to compete with any grocery store 

23 employee of such employer, who in any workweek is 

24 engaged in commerce or in the production of goods 

25 for commerce (or is employed in an enterprise enVerDate Sep 11 2014 02:58 Dec 16, 2015 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H4254.IH H4254

smartinez on DSK4TPTVN1PROD with BILLS
4 

•HR 4254 IH

1 gaged in commerce or in the production of goods for 

2 commerce). 

3 (2) NOTICE.—An employer subject to sub4 section (a) shall post, in a conspicuous place on the 

5 premises of such employer, a notice of the prohibi6 tion set forth in such subsection. 

7 (b) PURCHASE AGREEMENTS.—No employer who 

8 owns or operates at least one grocery store may, in con9 junction with the purchase of one or more grocery stores 

10 owned or operated by another employer, include in any 

11 agreement between such employers any provision that re12 stricts either employer from hiring a grocery store em13 ployee of the other employer. 

14 SEC. 4. GROCERY STORE EMPLOYEE RETENTION OF SE15 NIORITY AND BENEFITS AFTER ACQUISITION 

16 OR MERGER. 

17 An employer who acquires the operations of another 

18 employer (hereafter referred to as the former employer) 

19 and retains in employment a grocery store employee of the 

20 former employer at the same grocery store of the former 

21 employer shall continue to recognize, for all employment 

22 purposes, the seniority of such grocery store employee, 

23 and, to the extent practicable, make available to such em24 ployees any benefits made available by the former em25 ployer. 


smartinez on DSK4TPTVN1PROD with BILLS
5 

•HR 4254 IH

1 SEC. 5. ENFORCEMENT. 

2 (a) IN GENERAL.—The Secretary shall receive, inves3 tigate, attempt to resolve, and enforce a complaint of a 

4 violation of section 3 or 4 in the same manner that the 

5 Secretary receives, investigates, and attempts to resolve 

6 a complaint of a violation of section 6 or 7 of the Fair 

7 Labor Standards Act of 1938 (29 U.S.C. 206 and 207), 

8 subject to subsection (b). 

9 (b) CIVIL FINE.— 

10 (1) MAXIMUM FINE.—The Secretary shall im11 pose a civil fine— 

12 (A) with respect to any employer who vio13 lates section 3(a) or 4, an amount not to exceed 

14 $5,000 for each employee who was the subject 

15 of such violation; and 

16 (B) with respect to any employer who vio17 lates section 3(b), an amount not to exceed 

18 $5,000. 

19 (2) CONSIDERATION.—In determining the 

20 amount of any civil fine under this subsection, the 

21 Secretary shall consider the appropriateness of the 

22 fine to the size of the employer subject to such fine 

23 and the gravity of the applicable violation. 

Æ 


smartinez on DSK4TPTVN1PROD with BILLS